Dolly Varden Announces $2.75m Flow Through Share Offering

Press Release

June 4, 2019 – Vancouver, BC: Dolly Varden Silver Corporation (TSX.V: DV | U.S.: DOLLF) (the “Company” or “Dolly Varden”) is pleased to announce that the Company intends to undertake a private placement financing (the “Offering”) to raise gross proceeds of up to $2.75 million from the sale of up to 11,000,000 common shares that qualify as “flow-through shares” (“Flow-Through Shares”), as defined under the Income Tax Act (Canada), at a price of $0.25 per flow through share.

The Company has agreed to pay a finder’s fee in respect of those purchasers under the Offering introduced to the Company by Eventus Capital Corp. (the “Finder”). The Finder will receive common shares in the Company equal to 6% of the gross proceeds received from purchasers under the Offering who were introduced to the Company by the Finder.

The issuance of the Flow-Through Shares, and payment of the Finder’s fee, are subject to the approval of the TSX Venture Exchange (“TSXV”), receipt of any other required regulatory approvals and other customary closing conditions. Closing of the Offering is anticipated to occur on or about June 18th, 2019. Securities issued under the Offering will be subject to a four-month hold period.

The net proceeds of the Offering will be used for further exploration and mineral resource expansion and drilling of the Dolly Varden silver property in northwestern British Columbia, Canada. The 2019 exploration program will include diamond drilling and extensive soils sampling.

Pursuant to the ancillary rights agreement between Hecla Canada Ltd. (“Hecla”) and the Company dated September 4, 2012 (the “ARA”), Hecla will be entitled to acquire common shares to maintain its pro-rata equity interest in the Company. If Hecla exercises its pro-rata rights under the ARA, any securities issued to Hecla will be in addition to those issued as part of the Offering.

About Dolly Varden

Dolly Varden Silver Corporation is a mineral exploration company focused on exploration in northwestern British Columbia. Dolly Varden has two projects, the namesake Dolly Varden silver property and the nearby Big Bulk copper-gold property. The Dolly Varden property is considered to be highly prospective for hosting high-grade precious metal deposits, since it comprises the same structural and stratigraphic setting that host numerous other high-grade deposits (Eskay Creek, Brucejack). The Big Bulk property is prospective for porphyry and skarn style copper and gold mineralization similar to other such deposits in the region (Red Mountain, KSM, Red Chris).

The current resource estimation work reported herein was completed by Mr. Steven Nicholls, BASc., MAIG, with APEX Geoscience Ltd. (“APEX”) under the direct supervision of Mr. Andrew J. Turner, P.Geo., also with APEX. Both are independent geological consultants and Qualified Persons as defined by National Instrument 43-101.

APEX estimated Indicated and Inferred Mineral Resources for Torbrit and Dolly Varden deposits. The Torbrit mineral resource estimation utilized 85 surface core drill holes, 275 underground core drill holes and 123 underground channel/face samples. The Dolly Varden mineral resource estimation utilized 27 surface core drill holes, 26 underground core drill holes, 9 trenches and 229 underground channel/face samples. Silver mineralization exists throughout the system with varying amounts of associated lead and zinc.

The mineral resources for the Torbrit and Dolly Varden Deposits were estimated at 150 g/t Ag cut-off grade. The Torbrit Deposit is estimated to comprise an Indicated Mineral Resource of 2,623,000 tonnes at an average grade of 297 g/t Ag for a total of approximately 25.025 million contained troy ounces of silver. The Torbrit Deposit is also estimated to comprise an Inferred Mineral Resource of 1,185,000 tonnes at an average grade of 278 g/t Ag for a total of approximately 10.588 million contained troy ounces of silver. The Dolly Varden Deposit is estimated to comprise an Indicated Mineral Resource of 156,000 tonnes at an average grade of 414 g/t Ag for a total of approximately 2.078 million contained troy ounces of silver. The Dolly Varden Deposit is also estimated to comprise an Inferred Mineral Resource of 86,000 tonnes at an average grade of 272 g/t Ag for a total of approximately 754,000 contained troy ounces of silver.

Ben Whiting, P.Geo., Vice President of Exploration and Robert van Egmond, P.Geo., Chief Geologist for Dolly Varden, serve as ‘Qualified Persons’ under National Instrument 43-101, and have approved the scientific and technical information contained in this news release.

The Company’s Common Shares are listed and traded on the TSXV under the symbol “DV” and on the OTCBB system under the symbol “DOLLF”.

 

Contact Information:

Dolly Varden Silver Corporation
Gary Cope, President and CEO
1-604-687-8566
www.dollyvardensilver.com

Dolly Varden Silver Corporation
Alex Tsakumis, Vice President – Corporate Development
1-604-687-8566
Email: alex@belcarragroup.com

IBF4